U.S. indices closed higher on Tuesday on news that face-to-face talks between U.S. and Chinese trade negotiators will begin next week. Stocks in the Automobiles & Components (+2.34%), Materials (+1.99%) and Banks (+1.66%) sectors helped the market higher. On the economic data front, existing home sales fell to an annualized rate of 5.27M in June (estimated 5.32M) from 5.34M in May as the spring selling season was weaker than expected. The S&P 500 (3,005.47) stays above its 20d moving average (2,977.44 – positive slope) and its 50d moving average (2,904.46 – positive slope).
European markets are expected to start on a flat note.
Foreign Exchange
The US dollar was bullish against all its major pairs on Tuesday. On the economic data front, existing home sales reached 5.27M in June (estimated 5.32M) compared with 5.34M in the previous month as the spring selling season was weaker than expected.
The Euro was bearish against all of its major pairs with the exception of the NZD. In Europe, euro zone consumer confidence index slightly bounced to -6.6 in July in first reading (-7.1 expected) from -7.2 in June.
The Australian dollar was bearish against all of its major pairs with the exception of the NZD and EUR.
Commodities
After the close of Wall Street, WTI Crude Future (SEP 19) was up $0.8 to $57.01. The contract was below its 20D MA (@ $58.07) and below its 50D MA (@ $57.42).
Gold was down $7.1 to $1417.8. The precious metal was above its 20D MA (@ $1413) and above its 50D MA (@ $1359).
Copper Future (SEP 19) on Comex was down 1.6c to 270.55c/lb. The contract was above its 20D MA (@ 269.77c) and above its 50D MA (@ 268.94c). In Europe, the London Metal Exchange reported its copper inventories decreased 2350 tons to 293375 tons.